Communication in Australia through electronic means using devices such as telephone, television, radio or computer, and services such as the telephony and broadband networks have always been important in Australia given the 'tyranny of distance' with a dispersed population. Governments have driven telecommunication development and have a key role in regulation.
Each of the six Australian colonies had their own telephony communications network prior to Federation of Australia in 1901. The Australian networks were government assets operating under colonial legislation modelled on that of Britain. The UK Telegraph Act 1868 for example empowered the Postmaster-General to 'acquire, maintain and work electric telegraphs' and foreshadowed the 1870 nationalisation of competing British telegraph companies.
Australia's first telephone service (connecting the Melbourne and South Melbourne offices of Robinson Brothers) was launched in 1879. The private Melbourne Telephone Exchange Company opened Australia's first telephone exchange in August 1880. Around 7,757 calls were handled in 1884.
The nature of the networks meant that regulation in Australia was undemanding: network personnel were government employees or agents, legislation was enhanced on an incremental basis and restrictions could be achieved through infrastructure. All the colonies ran their telegraph networks at a deficit through investment in infrastructure and subsidisation of regional access, generally with bipartisan support.
Government-operated post office and telegraph networks - the largest parts of the bureaucracy - were combined into a single department in each colony on the model of the UK Post Office: South Australia in 1869, Victoria in 1870, Queensland in 1880 and New South Wales in 1893.
At Federation, the colonial networks (staff, switches, wires, handsets, buildings etc.) were transferred to the Commonwealth Postmaster-General's Department responsible for domestic postal, telephone and, telegraph services becoming the responsibility of the first Postmaster-General (PMG), a federal. With 16,000 staff (and assets of over £6 million) the PMG accounted for 80% of the new federal bureaucracy.